SRC-AAA H.B. 41 75(R) BILL ANALYSIS Senate Research Center H.B. 41 By: McCall (Shapiro) Finance 4-21-97 Engrossed DIGEST In the last 10 years, school property taxes in Texas have nearly tripled. In 1990, the school district of Littleton, Colorado instituted a program that allows senior citizens to contribute service to the school district, and receive up to $513 credit against their school taxes. This bill authorizes the governing body of a school district, by resolution, to permit individuals who are at least 65 years of age to perform certain services for the school in lieu of paying taxes imposed by the district. PURPOSE As proposed, H.B. 41 authorizes the governing body of a school district, by resolution, to permit individuals who are at least 65 years of age to perform certain services for the school in lieu of paying taxes imposed by the district. RULEMAKING AUTHORITY Rulemaking authority is granted to the governing body of a school district in SECTION 1 ( Section 31.035, Tax Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 31, Tax Code, by adding Section 31.035, as follows: Sec. 31.035. PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF SCHOOL TAXES ON HOMESTEAD OF ELDERLY PERSON. Authorizes the governing body of a school district, by resolution, to permit individuals who are at least 65 years of age to perform certain services for the school in lieu of paying taxes imposed by the district. Sets forth certain determinations of the governing body of the school district to be made. Requires the governing body of the school district to require a contract to be executed for a person performing services in lieu of paying taxes. Sets forth the requirements of the contract. Sets forth the calculation for the ration between hours worked and taxes credited. Sets forth requirements and procedures if the property owner fails to perform services. Sets forth benefits of a property owner while working for the district. SECTION 2. Amends Section 42.302, Education Code, by adding Subsection (c), to provide that school district taxes for which credit is granted are considered taxes collected by the school district as if the taxes were paid when the credit for the taxes was granted. SECTION 3. Emergency clause. Effective date: upon passage.